NRS 370.505 Payment
to wholesale dealer for cigarettes and other tobacco products purchased by
retail dealer: Time for payment; prohibition of and penalty for extension of
credit; investigations and hearings.

NRS 370.698 Suspension,
revocation and reinstatement of license of wholesale dealer whose license is
suspended or revoked in another state; denial of listing in, removal from and
reinstatement to directory of nonparticipating manufacturer and its brand
families.

NRS 370.001Definitions.As
used in NRS 370.001 to 370.430,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 370.005 to 370.055,
inclusive, have the meanings ascribed to them in those sections.

NRS 370.005“Basic cost of cigarettes” defined.“Basic
cost of cigarettes” means the manufacturer’s invoice cost of cigarettes by
carton to the wholesale dealer in the quantity last purchased, less all
allowances in an amount not exceeding 2.5 percent of the invoice cost of
cigarettes by carton, plus the full value of any cigarette revenue stamps that
are affixed to the packages, packets or containers of cigarettes, if not
included in the invoice cost of cigarettes by carton.

NRS 370.010“Cigarette” defined.“Cigarette”
means all rolled tobacco or substitutes therefor wrapped in paper or any
substitute other than tobacco, irrespective of size or shape and whether or not
the tobacco is flavored, adulterated or mixed with any other ingredient.

NRS 370.013“Cigarette package” defined.“Cigarette
package” means the individual pack, box or other container that contains a
cigarette. The term does not include a container that itself contains other
containers, such as a carton of cigarettes.

NRS 370.020“Consumer” defined.“Consumer”
means any person who comes into possession of cigarettes in this State as a
final user for any purpose other than offering them for sale as a wholesale or
retail dealer.

3. Cigarettes or “roll-your-own” tobacco
offered for sale in this State by a manufacturer, or cigarettes or
“roll-your-own” tobacco of a brand family, that is not listed in the directory
created pursuant to NRS 370.675;

4. Cigarettes bearing a tribal stamp issued
by the Department which are sold or offered for sale at a retail location that
is not located on qualified tribal land; or

5. Cigarettes or other tobacco product:

(a) Exported from or imported into this State, or
mailed, shipped, delivered, sold, exchanged, transported, distributed or held
for distribution within the borders of this State by any person in violation of
any of the provisions of this chapter;

(b) In any way held in the possession or
constructive possession of any person not authorized under this chapter to
possess or constructively possess the cigarettes or other tobacco product; or

(c) Being offered for sale in any form other than
in an unopened package in violation of subsection 1 of NRS 202.2493.

1. “Delivery sale” means any sale of
cigarettes, whether the seller is located within or outside of the borders of
this State, to a consumer in this State for which:

(a) The purchaser submits the order for the sale
by means of a telephonic or other method of voice transmission, the mail or any
other delivery service, or the Internet or any other on-line service; or

(b) The cigarettes are delivered by mail or the
use of another delivery service.

2. For the purpose of this section, any
sale of cigarettes to a natural person in this State who does not hold a
current license as a wholesale or retail dealer constitutes a sale to a
consumer.

NRS 370.0295“Importer” defined.“Importer”
means any person in a state or territory of the United States to whom
cigarettes that are manufactured outside the United States are shipped, delivered
or consigned for resale.

NRS 370.0305“License” defined.“License”
means a license issued pursuant to NRS 370.001 to 370.430, inclusive, that authorizes the holder to
conduct business as a manufacturer or a wholesale or retail dealer.

1. For which legal title is vested in, or
held in trust for the benefit of, an Indian tribe or an individual Native
American, and which is subject to restrictions against alienation pursuant to
federal law; and

NRS 370.035“Sale” and “to sell” defined.“Sale”
or “to sell” includes any of the following:

1. To exchange, barter, possess or traffic
in;

2. To solicit or receive an order for;

3. To keep or expose for sale;

4. To deliver for value;

5. To peddle;

6. To possess with intent to sell;

7. To transfer to anyone for sale or
resale;

8. To possess or transport in
contravention of the provisions of NRS 370.001 to 370.430, inclusive;

9. To traffic in for any consideration,
promised or obtained directly or indirectly; or

10. To procure or allow to be procured for
any reason.

(Added to NRS by 1965, 1245; A 1977, 783; 1983, 708)

NRS 370.037“Sale at wholesale” defined.“Sale
at wholesale” means a bona fide transfer of title to cigarettes for a valuable
consideration, made in the ordinary course of trade or in the usual conduct of
the wholesale dealer’s business, to a retail dealer for the purpose of resale.

NRS370.052“Tobacco product package” defined.“Tobacco
product package” means the individual pack, box or other container that
contains any other tobacco product. The term does not include a container that
itself contains other containers.

1. Any person, whether located within or
outside of the borders of this State, who:

(a) Brings, sends, or causes to be brought or
sent into this State any unstamped cigarettes purchased from the manufacturer
or another wholesale dealer; and

(b) Stores, sells or otherwise disposes of those
cigarettes within the State.

2. Any person who manufactures or produces
cigarettes within this State and who sells or distributes them within the
State.

3. Any person, whether located within or
outside of the borders of this State, who acquires cigarettes solely for the
purpose of bona fide resale to retail dealers in this State or to other persons
in this State for the purpose of resale only.

NRS 370.0751Imposition of excise tax on cigarettes by governing body of
Indian reservation or colony.

1. The governing body of an Indian
reservation or Indian colony may impose an excise tax on any cigarettes sold on
the reservation or colony.

2. If an excise tax is imposed, the
governing body may establish procedures for collecting the excise tax from any
cigarette dealer authorized to do business on the reservation or colony.

(Added to NRS by 1977, 782)

NRS 370.077Cigarette taxes are direct taxes upon consumer.All taxes paid under the provisions of this
chapter are direct taxes upon the consumer and are precollected for convenience
only. Taxes paid by persons other than the consumer are advances, and shall be
added to the selling price of the cigarettes.

NRS 370.085Maintenance and distribution of list of licenses and licensees
and of Indian tribes from which Department does not collect tax.The Department shall create and maintain on
its Internet website and otherwise make available for public inspection a list
of all:

1. Currently valid licenses and the
identity of the licensees holding those licenses; and

2. Indian tribes on whose reservations or
colonies cigarettes or other products made from tobacco are sold and, pursuant
to NRS 370.515, from which the Department does not
collect the tax imposed by this chapter on such cigarettes or other products
made from tobacco sold on the reservations or colonies.

2. Include the name and address of the
applicant. If the applicant is a firm, association or partnership, the
application must include the names and addresses of each of its members. If the
applicant is a corporation, the application must include the names and
addresses of the president, vice president, secretary and managing officer or
officers.

3. Specify the location, by street and
number, of the principal place of business of the applicant and of the premises
for which the license is sought.

4. Specify any other information the
Department may require.

5. Except as otherwise provided in NRS 370.001 to 370.430,
inclusive, be accompanied by the required license fee.

6. Be accompanied by a certified copy of
the certificate required by NRS 602.010
or any renewal certificate required by NRS
602.035.

NRS 370.110Issuance of wholesale dealer’s license to certain applicants
without payment of fees.The
Department may issue a wholesale cigarette dealer’s license without payment of
fees to any applicant who is authorized to do business on an Indian reservation
or Indian colony or upon a military or other federal reservation.

1. The name of the person to whom it is
issued. If the license is issued under a fictitious name, the license shall
also set forth the name of each of the persons conducting the business under
the fictitious name.

2. The location, by street and number, of
the premises for which the license is issued.

1. Each license issued by the Department
is valid only for the calendar year for which it is issued, and must be renewed
annually.

2. The Department shall not charge any
license fees for a manufacturer’s or retail dealer’s license.

3. An annual license fee of $150 must be
charged for each wholesale dealer’s license. If such a license is issued at any
time during the year other than on January 1, except for the renewal of a
delinquent license pursuant to subsection 5, the licensee shall pay a
proportionate part of the annual fee for the remainder of the year, but not
less than 25 percent of the annual license fee.

4. The fees for a wholesale dealer’s
license are due and payable on January 1 of each year. If the annual license
fee is not paid by January 15, the license is cancelled automatically.

5. A wholesale dealer’s license which is
cancelled for nonpayment of the annual license fee may be renewed at any time
by the payment of the fee plus a 5 percent penalty thereon.

1. Except as otherwise provided in this
section, each licensed wholesale cigarette dealer shall furnish a bond executed
by the wholesale cigarette dealer as principal, and by a corporation qualified
under the laws of this state as surety, payable to the State of Nevada and
conditioned upon the payment of all excise taxes required to be precollected by
the wholesale cigarette dealer under the provisions of this chapter. Each bond
must be in a principal sum equal to the largest amount of tax precollected by
the wholesale cigarette dealer in any quarter of the preceding year, or if the
information to establish that amount is not available, then in a sum required
from a licensee operating under conditions deemed comparable by the Department.
No bond may be for less than $1,000. When cash or a savings certificate,
certificate of deposit or investment certificate is used, the amount must be
rounded up to the next larger integral multiple of $100.

2. Except as otherwise provided in this
section, each licensed wholesale cigarette dealer who wishes to defer payment
on the purchase of revenue stamps or metered machine impressions shall furnish
a bond executed by the wholesale cigarette dealer as principal, and by a
corporation qualified under the laws of this state as surety, payable to the
State of Nevada and conditioned upon the payment of all deferred payments for
revenue stamps and metered machine impressions. Each bond must be in a
principal sum equal to the maximum amount of revenue stamps or metered machine
impressions which the wholesale dealer may have unpaid at any time. No bond may
be for less than $1,000. When cash or a savings certificate, certificate of
deposit or investment certificate is used, the amount must be rounded up to the
next larger integral multiple of $100.

3. In lieu of a bond a licensed wholesale
cigarette dealer may deposit with the Department, under such terms as the
Department may prescribe, a like amount of lawful money of the United States or
any other form of security authorized by NRS
100.065. If security is provided in the form of a savings certificate,
certificate of deposit or investment certificate, the certificate must state
that the amount is unavailable for withdrawal except upon order of the
Department. The Department shall deposit all cash and bonds of the United
States or of the State of Nevada received pursuant to this subsection with the
State Treasurer as custodian.

4. Upon application and a satisfactory
showing, the Department may increase or decrease the amount of a bond required
by subsection 1 or 2, based on the amount of excise tax precollected or
payments deferred, respectively, by the wholesale cigarette dealer.

5. The Department may waive the
requirement of the bond required by subsection 1 or 2, whenever a licensed
wholesale cigarette dealer has maintained a satisfactory record of payment of
excise taxes or deferred payments, respectively, for a period of 5 consecutive
years.

6. A wholesale dealer is not entitled to a
refund of any portion of money paid as a bond pursuant to this section if the
wholesale dealer has failed to file a report required by this chapter or owes
the Department any payment or penalty pursuant to this chapter.

NRS 370.160Counties, cities and towns may require business licenses.This chapter does not prohibit any county,
city or town in the State of Nevada from requiring licenses before a person
engages in business as a wholesale dealer or retail dealer in cigarettes.

[Part 9:192:1947; A 1949, 598; 1943 NCL §
6528.09]—(NRS A 1973, 1006)

NRS 370.165Levy, rate and collection of tax.There
is hereby levied a tax upon the purchase or possession of cigarettes by a
consumer in the State of Nevada at the rate of 40 mills per cigarette. The tax
may be represented and precollected by the affixing of a revenue stamp or other
approved evidence of payment to each package, packet or container in which
cigarettes are sold. The tax must be precollected by the wholesale or retail
dealer, and must be recovered from the consumer by adding the amount of the tax
to the selling price. Each person who sells cigarettes at retail shall
prominently display on the premises a notice that the tax is included in the
selling price and is payable under the provisions of this chapter.

NRS 370.170Revenue stamp to be affixed to each package of cigarettes;
tribal stamp required on each package of cigarettes sold on tribal land or by
Indian tribe.

1. Except as otherwise provided in this
chapter, it is unlawful for any person to give, sell or offer to give or sell
any cigarettes in this state unless there is affixed to each of the cigarette
packages a Nevada cigarette revenue stamp which is issued by the Department and
affixed by a metered stamping machine approved by and registered with the
Department or any other method approved by the Department, and which is for the
amount of the tax on all of the cigarettes contained in the cigarette package.

2. Each cigarette package sold on
qualified tribal land or by an Indian tribe or a member of a tribe for which
the Department does not collect a state excise tax pursuant to NRS 370.515 must bear a tribal stamp issued by the
Department.

1. Except as otherwise provided in
subsection 2 or a regulation of the Department:

(a) No person, other than a wholesale dealer that
receives unstamped cigarette packages directly from a person who holds a
current permit to engage in business as a manufacturer or importer of
cigarettes issued pursuant to 26 U.S.C. § 5713, may possess an unstamped
cigarette package.

(b) Any person who ships unstamped cigarette packages
into this State other than to a wholesale dealer who holds a current license
shall first file with the Department a notice of that shipment.

2. Subsection 1 does not apply to any
common or contract carrier who is transporting cigarettes in compliance with
the provisions of NRS 370.295.

NRS 370.180Design and printing of revenue stamps; identification of dealer
on stamp; regulations concerning use of metered stamping machine.

1. The Department shall:

(a) Design suitable stamps for the purpose of
this chapter which meet the requirements of this section; and

(b) From time to time, have as many revenue
stamps printed as may be required.

2. Each
stamp must be designed to permit the identification of the dealer who affixed
the stamp to a package or other container of cigarettes. The dealer must be
identified by a number or other mark on the stamp. The Department shall
maintain, for not less than 3 years after the date the stamp is provided to the
dealer, a record of the information necessary to identify the dealer by
examining the stamp. Upon request, the Department shall provide to any person
the information maintained pursuant to this subsection.

3. The use of a metered stamping machine
approved by and registered with the Department shall be subject to such
regulations as prescribed by the Department.

1. The Department may sell Nevada
cigarette revenue stamps to a licensed dealer. As payment for the stamps, the
Department shall deduct from the excise tax collected from the dealer the actual
cost incurred by the Department for the stamps and for making the sale.

2. Payment for the revenue stamps or
metered machine impressions must be made at the time of purchase unless the
wholesale dealer has been authorized to defer payments by the Department. A
wholesale dealer may apply to the Department for authorization to defer
payments for revenue stamps or metered machine impressions at any time.

3. The Department may provide by
regulation for:

(a) Payment of the tax by manufacturers without the
use of stamps on gifts or samples sent into Nevada when plainly marked “Tax
Paid.”

NRS 370.193Department to fix maximum amount of revenue stamps or metered
machine impressions upon application by wholesale dealer.A wholesale dealer may apply to the Department
to fix the maximum amount of revenue stamps or metered machine impressions which
the wholesale dealer may have unpaid at any time. Upon receipt of the
application and the bond or bonds required pursuant to NRS
370.155, the Department shall fix an amount for the wholesale dealer.

1. The amount owing for revenue stamps and
metered machine impressions for which payment was deferred in any calendar
month is due on or before the 25th day of the following calendar month. Payment
must be made by a remittance payable to the Department.

2. Upon request of the wholesale dealer
for good cause shown, the Department may grant an extension of the due date of
any deferred payment for a period not exceeding 5 days.

3. The Department may suspend without
prior notice the privilege to defer payment for the purchase of revenue stamps
and metered machine impressions or may reduce the maximum amount of revenue
stamps or metered machine impressions which the wholesale dealer may have
unpaid at any time if:

(a) The wholesale dealer fails to pay for stamps
or impressions at the times required by subsection 1;

(b) The bond or bonds required pursuant to NRS 370.155 are cancelled or become void, impaired or
unenforceable for any reason; or

(c) The Department determines that any deferred
payments are in jeopardy of not being paid.

NRS 370.200Sale of cigarette revenue stamps by sheriff and city officers.

1. The Department is authorized to appoint
the sheriff of any county and officers of incorporated cities to act as its
agents in the sale of Nevada cigarette revenue stamps.

2. The sheriff and city officers shall:

(a) Serve as such agent without additional
compensation; and

(b) On or before the last day of the month
following the month in which the sale of cigarette stamps occurred, make a
return of all receipts collected from sales of cigarette revenue stamps to the
Department, accompanied by a remittance payable to the order of the Department.

NRS 370.210Requirements for and restrictions on affixing stamps; handling
of unstamped cigarettes for sale or distribution outside State.

1. A wholesale dealer whose stamping
facilities are located within the borders of this State shall affix stamps to
all applicable cigarette packages received at those stamping facilities within
20 days after receipt. A wholesale dealer may set aside, without affixing
stamps, only that part of the stock of the wholesale dealer that is identified
for sale or distribution outside of the borders of this State. A wholesale
dealer must identify any stock to be set aside pursuant to this subsection
within 20 days after the receipt of that stock.

2. A wholesale dealer may affix stamps
only to cigarette packages that the wholesale dealer has received directly from
a person who holds a current permit to engage in business as a manufacturer or
importer of cigarettes issued pursuant to 26 U.S.C. § 5713.

3. If a wholesale dealer maintains stocks
of unstamped cigarette packages as authorized pursuant to subsection 1, those
unstamped cigarette packages must be stored separately from stamped cigarette
packages and must not be transferred by the wholesale dealer to another
facility of the wholesale dealer within the borders of this State or to any
other person within the borders of this State.

4. A person shall not affix stamps to any
cigarette packages except upon the premises described in the license of a
wholesale dealer or upon other premises where authorized by regulation.

NRS 370.220Allowance of discounts for services rendered by dealers.In the sale of any cigarette revenue stamps or
any metered machine settings to a licensed cigarette dealer, the Department and
its agents shall allow the purchaser a discount of 0.25 percent against the
amount of excise tax otherwise due for the services rendered in affixing
cigarette revenue stamps or metered machine impressions to the cigarette
packages.

NRS 370.230Destruction of spoiled or unusable stamps upon written
authorization of State Board of Examiners.Upon
the written authorization of the State Board of Examiners, any spoiled or
unusable stamps in the possession of the Department shall be destroyed. The
written authorization of the State Board of Examiners shall set forth the
number, denomination and face value of the stamps.

(a) Reporting requirements for manufacturers and
wholesale dealers; and

(b) Procedures for the electronic submission of
reports required pursuant to any reporting requirements established under
paragraph (a).

2. Any regulations adopted pursuant to
subsection 1 relating to reporting requirements for manufacturers may provide
for submission to the Department periodic reports of:

(a) The quantity of cigarette packages that were
distributed or shipped to another manufacturer or to a wholesale dealer within
the borders of this State during the reporting period, and the name and address
of each person to whom those products were distributed or shipped;

(b) The quantity of cigarette packages that were
distributed or shipped to another facility of the same manufacturer within the
borders of this State during the reporting period; and

(c) The quantity of cigarette packages that were
distributed or shipped within the borders of this State to Indian tribes or
instrumentalities of the Federal Government during the reporting period, and
the name and address of each person to whom those products were distributed or
shipped.

3. Any regulations adopted pursuant to
subsection 1 relating to reporting requirements for wholesale dealers may
provide for submission to the Department periodic reports of:

(a) The inventory of stamped and unstamped
cigarette packages held by the wholesale dealer for sale or distribution within
the borders of this State on hand at the beginning of the reporting period;

(b) The inventory of cigarette packages held by
the wholesale dealer for sale or distribution outside of the borders of this
State on hand at the beginning of the reporting period;

(c) The quantity of stamped cigarette packages
held for sale or distribution within the borders of this State that were
received by the wholesale dealer from another person during the reporting
period, and the name and address of each person from whom those products were
received;

(d) The quantity of cigarette packages held for
sale or distribution outside of the borders of this State that were received by
the wholesale dealer from another person during the reporting period, and the
name and address of each person from whom those products were received;

(e) The quantity of cigarette packages to which
Nevada stamps were affixed that were distributed or shipped to another
wholesale dealer or to a retail dealer within the borders of this State during
the reporting period, and the name and address of each person to whom those
products were distributed or shipped;

(f) The quantity of cigarette packages to which
Nevada stamps were affixed that were distributed or shipped to another facility
of the same wholesale dealer within the borders of this State during the
reporting period;

(g) The quantity of stamped cigarette packages
that were distributed or shipped within the borders of this State to Indian
tribes or instrumentalities of the Federal Government during the reporting
period, and the name and address of each person to whom those products were
distributed or shipped;

(h) The quantity of cigarette packages held for
distribution outside of the borders of this State that were distributed or
shipped outside of the borders of this State during the reporting period;

(i) The inventory of stamped and unstamped
cigarette packages held for sale or distribution within the borders of this
State on hand at the end of the reporting period;

(j) The inventory of cigarette packages held for
sale or distribution outside of the borders of this State on hand at the end of
the reporting period;

(k) The number of each type of stamp on hand at
the beginning of the reporting period;

(l) The number of each type of stamp purchased or
received during the reporting period;

(m) The number of each type of stamp applied
during the reporting period; and

(n) The number of each type of stamp on hand at
the end of the reporting period.

4. Any reports required by regulations
adopted pursuant to subsection 1 must be:

(a) Submitted on forms provided by or in a format
required by the Department; and

(b) Provided separately for each of the
facilities operated by the manufacturer or wholesale dealer.

5. In each report required by regulations
adopted pursuant to subsection 1, the information required must be itemized so
as to disclose clearly:

(a) The quantities of stamped and unstamped
cigarettes to which the report applies; and

(b) The brand and style of cigarettes to which
the report applies.

6. The reporting period for any reports
required by regulations adopted pursuant to subsection 1 must be for a duration
of not less than 1 month and not more than 3 months.

1. Each dealer authorized to purchase or
affix cigarette revenue stamps shall report to the Department:

(a) The inventory of all cigarettes in the
possession or control of the dealer at the close of business on the last day of
each month.

(b) The total value of all cigarette revenue
stamps affixed by the dealer upon cigarette packages sold in or shipped into
the State by the dealer during the preceding month.

2. The report must be made by the 25th day
of the month following shipments upon forms to be provided by the Department.

3. The dealer may be allowed 5 additional
days to file the report, if the dealer makes prior written application to the
Department and the Department finds good cause for extension.

4. If, during the preceding month, the
dealer affixed cigarette revenue stamps upon cigarette packages imported into
the United States, the dealer shall file with the report a copy of each
certificate submitted pursuant to 19 U.S.C. § 1681a(c) with regard to the
cigarette packages.

NRS 370.250Suspension or revocation of license: Grounds; powers and duties
of Department.

1. The Department may temporarily suspend
or permanently revoke a license as a wholesale dealer in accordance with the
regulations adopted pursuant to NRS 370.253 if the
licensee:

(a) Fails to file or files an incomplete or
inaccurate report or certification required by this chapter;

(b) Fails to pay any tax owed upon cigarettes
required by this chapter;

(c) Fails to cure any shortfall for which the
wholesale dealer is liable pursuant to NRS 370.683;

(d) Sells in this State, purchases or possesses
any cigarettes or cigarette packages in violation of any provision of this
chapter; or

(e) Imports into or exports from this State any
cigarettes or cigarette packages in violation of any provision of this chapter.

2. Except as otherwise provided in
subsection 1 or 3, the Department may temporarily suspend or permanently revoke
the license of any licensee for violating, or causing or permitting to be
violated, any of the provisions of NRS 370.001 to 370.430, inclusive, or any regulations adopted for the
administration or enforcement of any of those provisions.

3. The Department shall permanently revoke
the license of any licensee convicted of any felony pursuant to NRS 370.405.

NRS 370.253Procedure for suspension and revocation of license; regulations.The Department shall adopt regulations
establishing a procedure for the suspension and revocation of any license
issued pursuant to NRS 370.001 to 370.430, inclusive. In adopting the regulations
required by this section, the Department shall consider the effect of any
suspension or revocation of a license on the inventory of cigarettes that are
in the stream of distribution at the time of suspension or revocation.

(a) Wholesale dealer shall maintain copies of
invoices or equivalent documentation for each of its facilities for every
transaction in which the wholesale dealer is the seller, purchaser, consignor,
consignee or recipient of cigarettes. The invoices or documentation must
indicate the name and address of the consignor, seller, purchaser or consignee,
and the quantity by brand and style of the cigarettes involved in the
transaction.

(b) Retail dealer shall maintain copies of
invoices or equivalent documentation for every transaction in which the retail
dealer receives or purchases cigarettes at each of its facilities. The invoices
or documentation must indicate the name and address of the wholesale dealer
from whom, or the address of another facility of the same retail dealer from
which, the cigarettes were received, and the quantity of each brand and style
of the cigarettes received in the transaction.

(c) Manufacturer shall maintain copies of
invoices or equivalent documentation for each of its facilities for every
transaction in which the manufacturer is the seller, purchaser, consignor,
consignee or recipient of cigarettes. The invoices or documentation must
indicate the name and address of the consignor, seller, purchaser or consignee,
and the quantity by brand and style of the cigarettes involved in the
transaction.

2. The records required by this section
must be preserved on the premises described in the license of the manufacturer,
wholesale dealer or retail dealer in such a manner as to ensure permanency and
accessibility for inspection at reasonable hours by authorized personnel of the
Department. With the permission of the Department, manufacturers, wholesale
dealers and retail dealers with multiple places of business may retain
centralized records, but shall transmit duplicates of the invoices or the
equivalent documentation to each place of business within 24 hours after the
request of the Executive Director or his or her designee.

3. The records required by this section
must be retained for not less than 3 years after the date of the transaction
unless the Department authorizes, in writing, their earlier removal or
destruction.

NRS 370.257Access to and confidentiality of records and reports; audit of
records by Department. [Effective through December 31, 2013.]

1. Each manufacturer, wholesale dealer and
retail dealer shall provide to the Executive Director and his or her designees
and to the Secretary or his or her designee, upon request, access to all the
reports and records required by NRS 370.001 to 370.430, inclusive. The Department at its sole
discretion may share the records and reports required by those sections with
law enforcement officials of the Federal Government, this State, other states,
Indian tribes or international authorities.

2. Except as otherwise provided in this
subsection, the reports submitted by licensees pursuant to NRS 370.001 to 370.430, inclusive,
are public records. Unless otherwise directed or ordered by a court of
competent jurisdiction, any information contained in those reports about
quantities of cigarettes by brand must not be released to anyone other than
persons permitted access to those reports pursuant to subsection 1.

3. The Department may audit the records of
each dealer to determine whether the manufacturer, wholesale dealer or retail
dealer has complied with the provisions of NRS 370.001
to 370.430, inclusive.

NRS 370.257Access to and
confidentiality of records and reports; audit of records by Department.
[Effective January 1, 2014.]

1. Each manufacturer, wholesale dealer and
retail dealer shall provide to the Executive Director and his or her designees
and to the Secretary or his or her designee, upon request, access to all the
reports and records required by NRS 370.001 to 370.430, inclusive. The Department at its sole
discretion may share the records and reports required by those sections with
law enforcement officials of the Federal Government, this State, other states,
Indian tribes, international authorities or any data clearinghouse or similar
entity established for the purposes of enforcing the provisions of NRS 370.600 to 370.705,
inclusive, or chapter 370A of NRS.

2. Except as otherwise provided in this
subsection, the reports submitted by licensees pursuant to NRS 370.001 to 370.430, inclusive,
are public records. Unless otherwise directed or ordered by a court of
competent jurisdiction, any information contained in those reports about
quantities of cigarettes by brand must not be released to anyone other than
persons permitted access to those reports pursuant to subsection 1.

3. The Department may audit the records of
each dealer to determine whether the manufacturer, wholesale dealer or retail
dealer has complied with the provisions of NRS 370.001
to 370.430, inclusive.

NRS 370.260Remittances to Department; allocation and appropriation of
remittances; monthly reports by Department.

1. All taxes and license fees imposed by
the provisions of NRS 370.001 to 370.430, inclusive, less any refunds granted as
provided by law, must be paid to the Department in the form of remittances
payable to the Department.

2. The Department shall:

(a) As compensation to the State for the costs of
collecting the taxes and license fees, transmit each month the sum the
Legislature specifies from the remittances made to it pursuant to subsection 1
during the preceding month to the State Treasurer for deposit to the credit of
the Department. The deposited money must be expended by the Department in
accordance with its work program.

(b) From the remittances made to it pursuant to
subsection 1 during the preceding month, less the amount transmitted pursuant
to paragraph (a), transmit each month the portion of the tax which is
equivalent to 35 mills per cigarette to the State Treasurer for deposit to the
credit of the Account for the Tax on Cigarettes in the State General Fund.

(c) Transmit the balance of the payments each
month to the State Treasurer for deposit in the Local Government Tax
Distribution Account created by NRS 360.660.

(d) Report to the State Controller monthly the
amount of collections.

3. The money deposited pursuant to
paragraph (c) of subsection 2 in the Local Government Tax Distribution Account
is hereby appropriated to Carson City and to each of the counties in proportion
to their respective populations and must be credited to the respective accounts
of Carson City and each county.

1. Every retail dealer making a sale to a
customer shall, at the time of sale, see that each package, packet or container
has the Nevada cigarette revenue stamp or metered stamping machine indicia
properly affixed.

2. Every cigarette vending machine
operator placing cigarettes in his or her coin-operated cigarette vending
machines for sale to the ultimate consumers shall at the time of placing them
in the machine see that each package, packet or container has the Nevada
cigarette revenue stamp or metered stamping machine indicia properly affixed.

3. No unstamped packages, packets or
containers of cigarettes may lawfully be accepted or held in the possession of
any person, except as authorized by law or regulation. For the purposes of this
subsection, “held in possession” means:

(a) In the actual possession of the person; or

(b) In the constructive possession of the person
when cigarettes are being transported or held for the person or for his or her
designee by another person. Constructive possession is deemed to occur at the
location of the cigarettes being transported or held.

4. Any cigarettes found in the possession
of any person except a person authorized by law or regulation to possess them,
which do not bear indicia of Nevada excise tax stamping, must be seized by the
Department or any of its agents, and caused to be stamped by a licensed
cigarette dealer, or confiscated and sold by the Department or its agents to
the highest bidder among the licensed wholesale dealers in this State after due
notice to all licensed Nevada wholesale dealers has been given by mail to the
addresses contained in the Department’s records. If there is no bidder, or in
the opinion of the Department the quantity of the cigarettes is insufficient,
or for any other reason such disposition would be impractical, the cigarettes
must be destroyed or disposed of as the Department may see fit. The proceeds of
all sales must be classed as revenues derived under the provisions of NRS 370.001 to 370.430,
inclusive.

5. Any cigarette vending machine in which
unstamped cigarettes are found may be so seized and sold to the highest bidder.

1. Upon proof satisfactory to the
Department, refunds shall be allowed for the face value of the cigarette
revenue stamp tax paid, less any discount previously allowed, upon cigarettes
that are sold to:

(a) The United States Government for Army, Air
Force, Navy or Marine Corps purposes and are shipped to a point within this
State to a place which has been lawfully ceded to the United States Government
for Army, Air Force, Navy or Marine Corps purposes;

(b) Veterans’ hospitals for distribution or sale
to service personnel with disabilities or ex-service personnel with
disabilities interned therein, but not to civilians or civilian employees;

(c) Any person if sold and delivered on an Indian
reservation or colony where an excise tax has been imposed which is equal to or
greater than the rate of the cigarette tax imposed under this chapter; or

(d) An Indian if sold and delivered on an Indian
reservation or colony where no excise tax has been imposed or the excise tax is
less than the rate of the cigarette tax imposed under this chapter.

2. Upon proof satisfactory to the
Department, refunds shall be allowed to cigarette dealers, or to manufacturers
or their representatives, for the face value of the cigarette revenue stamp tax
paid, less any discount previously allowed upon cigarettes destroyed because
the cigarettes had become stale. Applications for refunds shall be submitted in
an amount of not less than $15 and shall be accompanied by an affidavit of the
applicant setting forth:

(a) The number of packages of cigarettes
destroyed for which refund is claimed;

(b) The date or dates on which the cigarettes
were destroyed and the place where destroyed;

(c) That the cigarettes were actually destroyed
because they had become stale;

(d) By whom the cigarettes were destroyed; and

(e) Other information which the Department may
require.

3. Upon proof satisfactory to the
Department, refunds may be allowed to licensed wholesale cigarette dealers for
the face value of the cigarette metered machine stamp tax paid, less any
discount previously allowed upon:

(a) The balance of unused stamps on the
descending register of a cigarette meter machine destroyed by fire, if the
cigarette meter counting positions can be determined by the manufacturer of the
meter stamping machine;

(b) Cigarettes which were stamped on their carton
covers because of stamping machine failure to open the carton and stamp the
cigarette packs; or

(c) Cigarettes which were not stamped but were
registered on the machine as being stamped because of failure of the meter
counters.

4. Any refund shall be paid as other
claims against the State are paid.

NRS 370.290Exemption for cigarettes exported from State; notice to
Department of Taxation and state of destination; penalty.

1. A wholesale dealer shall not export
cigarettes unless they bear revenue stamps in accordance with NRS 370.170 and 370.180 to
any out-of-state destination other than by a licensed common or contract
carrier.

2. No cigarette revenue stamp tax is required
on any cigarettes exported from Nevada by a wholesale dealer to a person
authorized by the state of destination to possess untaxed or unstamped
cigarettes. Each wholesale dealer may set aside such portion of its stock of
cigarettes as is not intended to be sold or given away in this state and it
will not be necessary to affix Nevada cigarette revenue stamps or metered
machine impressions.

3. Every wholesale dealer shall, at the
time of shipping or delivering any unstamped cigarettes to a point outside of
this state, make a duplicate invoice and transmit such duplicate invoice to the
Department, at Carson City, not later than the 15th day of the following month.

4. Within 30 days after any wholesale
dealer ships any unstamped cigarettes to any destination outside Nevada, the
dealer shall send to the state of destination a written notice of the fact of
such shipment and whatever other information is required by such state.

5. If a wholesale dealer fails to comply
with the requirements of this section, the Department may suspend or revoke its
license or permit, as provided in subsection 2 of NRS
370.250.

NRS 370.295Transportation of cigarettes: Invoices to accompany shipment.Except for a consumer, every person who
transports cigarettes upon the public highways, roads or streets of this state
shall have in his or her actual possession invoices or delivery tickets for
such cigarettes, which shall show the true name and address of the consignor or
seller, the true name of the consignee or purchaser and the quantity and brands
of the cigarettes so transported.

1. If any unstamped cigarettes are
consigned to or purchased by any person in this State, such purchaser or
consignee must be a person authorized by this chapter to possess unstamped
cigarettes.

2. If invoices or delivery tickets for
unstamped cigarettes are lacking, if the name or address of the consignee or
purchaser is falsified or if the purchaser or consignee is not authorized by
this chapter to possess unstamped cigarettes, the cigarettes transported are
subject to seizure and sale under the provisions of NRS
370.270.

3. Transportation of cigarettes through
this State from a point outside this State to a point in some other state is
not a violation of this section if the person transporting the cigarettes has
in his or her possession adequate invoices or delivery tickets which give the
true name and address of the out-of-state seller or consignor and the
out-of-state purchaser or consignee.

4. In any case where the Department, its
duly authorized agent or any peace officer of the State has knowledge or
reasonable grounds to believe that any vehicle is transporting cigarettes in
violation of this chapter, the Department, agent or peace officer may stop the
vehicle and inspect it for contraband cigarettes.

NRS 370.310Sale or distribution of tax-free cigarettes by vending machine
prohibited.No tax-free cigarettes
shall be sold or otherwise distributed in any way by any coin-operated
cigarette vending machine.

NRS 370.315Sale of cigarettes in various packages.A
manufacturer of cigarettes who wishes to sell cigarettes in packages that
contain other than 20 cigarettes must so notify the Department not less than 90
days before the manufacturer may sell those packages of cigarettes in this
state.

NRS 370.321Licensing and duties of person who accepts order for delivery
sale.

1. A person shall not accept an order for
a delivery sale unless the person first obtains a license as a retail dealer.

2. A person who accepts an order for a
delivery sale shall comply with all of the requirements of this chapter and chapters 370A, 372
and 374 of NRS, and all other laws of this
State generally applicable to sales of cigarettes that occur entirely within
this State.

NRS 370.323Prerequisites to mailing or shipment of cigarettes; requests for
electronic mail addresses of prospective purchasers.

1. A person shall not cause the mailing or
shipment of cigarettes in connection with an order for a delivery sale unless
the person accepting the order first:

(a) Obtains from the prospective purchaser a
certification which includes:

(1) Reliable confirmation that the
purchaser is at least 18 years of age; and

(2) A statement signed by the prospective
purchaser in writing and under penalty of perjury which:

(I) Certifies the prospective
purchaser’s address and date of birth;

(II) Confirms that the prospective
purchaser understands that signing another person’s name to such certification
is illegal and that sales of cigarettes to children under 18 years of age are
illegal under the laws of this State; and

(III) Confirms that the prospective
purchaser desires to receive mailings from a tobacco company.

(b) Makes a good faith effort to verify the
information contained in the certification provided by the prospective
purchaser pursuant to paragraph (a) against any federal or commercially
available database established for that purpose.

(c) Sends to the prospective purchaser, by
electronic mail or other means, a notice which meets the requirements of
subsection 2 and requests confirmation that the order for the delivery sale was
placed by the prospective purchaser.

(d) Receives from the prospective purchaser
confirmation, pursuant to the request described in paragraph (c), that such
person placed the order for the delivery sale.

(e) Receives payment for the delivery sale from
the prospective purchaser by a credit or debit card that has been issued in
that purchaser’s name.

2. The notice required by paragraph (c) of
subsection 1 must include:

(a) A prominent and clearly legible statement
that the sale of cigarettes to children under 18 years of age is illegal;

(b) A prominent and clearly legible statement
that the sale of cigarettes is restricted to persons who provide verifiable
proof of age in accordance with this section; and

(c) A prominent and clearly legible statement
that sales of cigarettes are taxable under this chapter, and an explanation of
how the tax has been or is to be paid with respect to the delivery sale.

NRS 370.327Maintenance and retention of monthly records.Not later than the 10th day of each calendar
month, each person who has mailed, shipped or otherwise delivered cigarettes in
connection with a delivery sale during the previous calendar month, except a
delivery service, shall create and maintain records containing the following
information relating to every such delivery sale:

1. The name and address of the person to
whom the delivery sale was made; and

2. The quantity and brands of cigarettes
that were sold in the delivery sale.

Ê The records
required by this section must be provided to the Department at the Department’s
request and must be retained for not less than 3 years after the date of the
applicable transaction unless the Department, in writing, authorizes the
records to be removed or destroyed at an earlier time.

NRS 370.360Payment of tax; reports.Every
person using or consuming cigarettes subject to taxation on the use thereof
under the provisions of NRS 370.350 shall pay such
tax and make such reports thereon to the Department under such regulations as
may be prescribed by the Department.

NRS 370.372Determination of cost of cigarettes to wholesale dealer.In determining the cost of cigarettes to a
wholesale dealer:

1. A fractional part of a cent amounting
to 1/10 of 1 cent or more in cost to the wholesale dealer per carton of 10
packages of cigarettes must be rounded off to the next higher cent.

2. The invoice cost of cigarettes
purchased at a forced sale, bankruptcy sale, closeout sale or other sale
outside of the ordinary channels of trade must not be used to justify a price
lower than the replacement cost of cigarettes to the wholesale dealer in the
quantity last purchased through the ordinary channels of trade.

NRS 370.3725Selling price of wholesale dealer in certain circumstances.In advertisements, offers for sale or sales
involving two or more items, at least one of which is cigarettes, at a combined
price, and in advertisements, offers for sale or sales involving the giving of
a concession, the wholesale dealer’s selling price must not be below the cost
to the wholesale dealer of the cigarettes included in such transactions and the
invoice cost of all other articles, products, commodities and concessions included
in the advertisements, offers for sale or sales, whether the cost is paid by
the retail dealer, the wholesale dealer or any other person.

NRS 370.373Sale by wholesale dealer of cigarettes bought from another
wholesale dealer.A wholesale
dealer who sells cigarettes bought from another wholesale dealer to a retail
dealer, or for use or consumption, shall be deemed to be making a sale at
wholesale.

NRS 370.3735Certain sales at wholesale exempted.The
provisions of NRS 370.371 to 370.379,
inclusive, do not apply to a sale at wholesale made:

1. As an isolated transaction and not in
the usual course of business;

2. When cigarettes are advertised, offered
for sale or sold in a bona fide clearance sale for the purpose of discontinuing
trade in the cigarettes, and the advertisement, offer to sell or sale states
the reason therefor and the quantity of cigarettes advertised, offered for sale
or to be sold;

3. When cigarettes are advertised, offered
for sale or sold as imperfect or damaged and the advertising, offer to sell or
sale states the reason therefor and the quantity of cigarettes advertised,
offered for sale or to be sold;

4. When cigarettes are sold upon the final
liquidation of a business; or

5. When cigarettes are advertised, offered
for sale or sold by a fiduciary or other officer acting under the order or
direction of a court.

1. A wholesale dealer may advertise, offer
to sell or sell cigarettes at a price made in good faith to meet the lawful
price of a competitor who is rendering the same type of service and is selling
the same article at cost to him or her as a wholesale dealer.

2. The price of cigarettes advertised,
offered for sale or sold under an exception specified in NRS 370.3735 or at a bankruptcy sale is not the price
of a competitor for the purposes of this section.

3. In the absence of proof of the price of
a competitor, the lowest cost to the wholesale dealer determined by a survey of
costs that is made in accordance with recognized statistical and
cost-accounting practices for a trade area shall be deemed the price of a
competitor.

NRS 370.376Contract in violation of provisions is void.A contract made by a person in violation of
any of the provisions of NRS 370.371 to 370.379, inclusive, is void and no recovery thereon
may be made.

NRS 370.378Action to prevent, restrain or enjoin a violation or threatened
violation of provisions; action for damages and costs.

1. An action may be maintained in any
court of competent jurisdiction to prevent, restrain or enjoin a violation or
threatened violation of any provision of NRS 370.371
to 370.379, inclusive. An action may be instituted
by any person injured by a violation or threatened violation of NRS 370.371 to 370.379,
inclusive, or by the Attorney General upon the request of the Executive
Director. If in such an action, a violation or threatened violation is
established, the court shall enjoin and restrain, or otherwise prohibit the
violation or threatened violation. In such an action it is not necessary that
actual damages to the plaintiff be alleged or proved, but where alleged and
proved, the plaintiff, in addition to injunctive relief and costs of the suit,
including reasonable attorney’s fees, may recover from the defendant the actual
damages sustained by the plaintiff.

2. If no injunctive relief is sought or
required, any person injured by a violation of the provisions of NRS 370.371 to 370.379,
inclusive, may maintain an action for damages and costs, including attorney’s
fees, in any court of competent jurisdiction.

NRS 370.379Suspension or revocation of license; reinstatement of license.

1. The Department may suspend or revoke
the license of a retail or wholesale dealer who violates the provisions of NRS 370.371 to 370.379,
inclusive, or any regulation adopted thereunder, after notice to the licensee
and a hearing as prescribed by the Department.

2. The Department, upon a finding that the
licensee has failed to comply with any provision of NRS
370.371 to 370.379, inclusive, or any
regulation adopted by the Executive Director, may, in the case of a first
offender, suspend the license of the licensee for not less than 5 nor more than
20 consecutive business days. If the Department finds the offender has been
guilty of willful and persistent violations, it may suspend for not more than 6
months or revoke the person’s license.

3. Except as otherwise provided in NRS 370.698, a person whose license has been revoked
may apply to the Department at the end of 1 year for a reinstatement of the
license. The Department may reinstate the license if the Department determines
that the licensee will comply with the provisions of this chapter and the
regulations adopted by the Department.

4. A person whose license has been
suspended or revoked shall not sell cigarettes or permit cigarettes to be sold
during the period of suspension or revocation on the premises occupied by the
person or upon other premises controlled by the person. The expiration,
transfer, surrender, continuance, renewal or extension of a license issued
pursuant to this chapter does not bar or abate any disciplinary proceedings or
action.

(a) To alter, forge or counterfeit any license,
stamp or cigarette tax meter impression provided for in this chapter;

(b) To have in his or her possession any forged,
counterfeited, spurious or altered license, stamp or cigarette tax meter
impression, with the intent to use the same, knowing or having reasonable
grounds to believe the same to be such;

(c) To have in his or her possession one or more
cigarette stamps or cigarette tax meter impressions which he or she knows have
been removed from the pieces of packages or packages of cigarettes to which
they were affixed;

(d) To affix to any piece of a package or package
of cigarettes a stamp or cigarette tax meter impression which he or she knows
has been removed from any other piece of a package or package of cigarettes; or

(e) To have in his or her possession for the purpose
of sale cigarettes which do not bear indicia of the State of Nevada excise tax
stamping. Presence of the cigarettes in a cigarette vending machine is prima
facie evidence of the purpose to sell.

2. A person who violates any of the
provisions of subsection 1 is guilty of a category C felony and shall be
punished as provided in NRS 193.130.

(a) To fail to keep or make any record, return,
report or inventory, or keep or make any false or fraudulent record, return,
report or inventory, required pursuant to NRS 370.080
to 370.327, inclusive, or any regulations adopted
for the administration or enforcement of those provisions;

(b) To refuse to pay any tax imposed pursuant to NRS 370.080 to 370.327,
inclusive, or attempt in any manner to evade or defeat the tax or the payment
thereof;

(c) To alter, forge or otherwise counterfeit any
stamp;

(d) To sell or possess for the purpose of sale
any counterfeit stamp;

(e) To have in his or her possession any
counterfeit stamp, with the intent to use the counterfeit stamp, knowing or
having reasonable grounds to believe the stamp to be a counterfeit stamp;

(f) To have in his or her possession any stamp
which he or she knows has been removed from any cigarette package to which it
was affixed;

(g) To affix to any cigarette package a stamp
which he or she knows has been removed from any other cigarette package; or

1. A wholesale or retail dealer shall not
affix a Nevada cigarette revenue stamp or a metered machine impression upon a
package, carton, packet or other container of cigarettes which:

(a) Does not meet the requirements of the Federal
Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331 et seq., for the
placement of labels, warnings or any other information required by that Act to
be placed upon a container of cigarettes sold within the United States;

(b) Is labeled as “for export only,” “U.S. tax
exempt,” “for use outside the U.S.” or with similar wording indicating that the
manufacturer did not intend for the product to be sold in the United States;

(c) Has been altered by the unauthorized addition
or removal of wording, labels or warnings described in paragraph (a) or (b);

(d) Has been exported from the United States
after January 1, 2000, and imported into the United States in violation of 26
U.S.C. § 5754;

(e) Has
been imported into the United States in violation of 19 U.S.C. § 1681a;

(f) Was
manufactured, packaged or imported by a person who has not complied with 15
U.S.C. § 1335a with regard to the cigarettes;

(g) Violates
a federal trademark or copyright law; or

(h) Violates any other federal statute or
regulation or with respect to which any federal statute or regulation has been
violated.

(c) Possess in this state with the intent to sell
or distribute in this state,

Ê cigarettes
manufactured for export outside the United States.

3. The Department may impose a penalty on
a wholesale or retail dealer who violates subsection 1 or 2 as follows:

(a) For the first violation, a penalty of $5,000.

(b) For each subsequent violation, a penalty of
$10,000.

4. Notwithstanding any other provision of
law, the Department shall seize and destroy cigarettes upon which a revenue
stamp or metered machine impression was placed in violation of subsection 1 or
2.

5. As used in this section, “cigarettes
manufactured for export outside the United States” means cigarettes contained
in a package or carton which indicates that the cigarettes are tax exempt and
for use outside the United States.

1. Willfully fails, neglects or refuses to
make any report required by NRS 370.350 or 370.360, or required by rules and regulations lawfully
promulgated under the provisions of NRS 370.350 or 370.360; or

1. It is unlawful for any person knowingly
to sell or to possess for the purpose of sale any contraband tobacco products.
The presence of any contraband tobacco products in a vending machine is prima
facie evidence of the purpose to sell those products.

2. A person who violates any provision of
subsection 1 is guilty of:

(a) For the first offense involving contraband
tobacco products having a value of $25 or more but less than $250, a
misdemeanor.

(b) For each subsequent offense involving
contraband tobacco products having a value of $25 or more but less than $250, a
category D felony and shall be punished as provided in NRS 193.130.

(c) For the first offense involving contraband
tobacco products having a value of $250 or more, a gross misdemeanor.

(d) For each subsequent offense involving
contraband tobacco products having a value of $250 or more, a category C felony
and shall be punished as provided in NRS
193.130.

NRS 370.413Authority to search for evidence of violation.In order to obtain evidence of any violation
of this chapter, the Department, its agents, and all peace officers and
revenue-collecting officers of this State may enter and inspect, without a
warrant during normal business hours and with a warrant at any other time:

1. The facilities and records of any
manufacturer, wholesale dealer or retail dealer; and

2. Any other place where they may have
reason to believe contraband tobacco products are stored, warehoused or kept
for sale.

1. The Department, its agents, sheriffs
within their respective counties and all other peace officers of the State of
Nevada shall seize any counterfeit stamps and any contraband tobacco products
and machinery used to manufacture contraband tobacco products, found or located
in the State of Nevada.

2. A sheriff or other peace officer who
seizes stamps, contraband tobacco products or machinery pursuant to this
section shall provide written notification of the seizure to the Department not
later than 5 working days after the seizure. The notification must include the
reason for the seizure.

3. After consultation with the Department,
the sheriff or other peace officer shall transmit the contraband tobacco
products to the Department if:

(a) The contraband tobacco products consist of
cigarettes and:

(1) Except for revenue stamps or metered
machine impressions being properly affixed as required by this chapter, the
cigarettes comply with all state and federal statutes and regulations; and

(2) The Department approves the
transmission of the cigarettes; or

(b) The contraband tobacco products consist of
any other tobacco products and the Department approves the transmission of the
other tobacco products.

4. Upon the receipt of any:

(a) Cigarettes pursuant to subsection 3, the
Department shall dispose of the cigarettes as provided in subsection 4 of NRS 370.270; or

(1) Sell the other tobacco products to the
highest bidder among the licensed wholesale dealers in this State after due
notice to all licensed Nevada wholesale dealers has been given by mail to the
addresses contained in the Department’s records; or

(2) If there is no bidder, or in the
opinion of the Department the quantity of the other tobacco products is
insufficient, or for any other reason such disposition would be impractical,
destroy or dispose of the other tobacco products as the Department may see fit.

Ê The proceeds
of all sales pursuant to this paragraph must be classed as revenues derived
under the provisions of NRS 370.440 to 370.503, inclusive.

5. The sheriff or other peace officer who
seizes any stamps, contraband tobacco products or machinery pursuant to this
section shall:

(a) Destroy the stamps and machinery; and

(b) If he or she does not transmit the contraband
tobacco products to the Department, destroy the contraband tobacco products.

NRS 370.419Forfeiture of property on premises of wholesale or retail dealer
who commits certain fraudulent acts.All
fixtures, equipment and other materials and personal property on the premises
of any wholesale or retail dealer who, with intent to defraud the State:

1. Fails to keep or make any record,
return, report or inventory required pursuant to NRS
370.080 to 370.327, inclusive;

(2) Not less than $1,000 nor more than
$5,000 for each subsequent violation.

2. Any person who fails to pay any tax
imposed pursuant to the provisions of NRS 370.080
to 370.327, inclusive, within the time prescribed
by law or regulation shall pay a penalty of 500 percent of the tax due but
unpaid, in addition to the tax.

NRS 370.430Penalty for exportation of unstamped cigarettes to unauthorized
persons.Any dealer who exports
cigarettes which do not bear revenue stamps from Nevada to a person in another
state who is not authorized by that state to possess unstamped cigarettes is
guilty of a gross misdemeanor.

1. “Retail dealer” means any person who is
engaged in selling products made from tobacco, other than cigarettes, to
customers.

2. “Sale” means any transfer, exchange,
barter, gift, offer for sale, or distribution for consideration of products
made from tobacco, other than cigarettes.

3. “Ultimate consumer” means a person who
purchases a product made from tobacco, other than cigarettes, for his or her
household or personal use and not for resale.

4. “Wholesale dealer” means any person
who:

(a) Brings or causes to be brought into this
State products made from tobacco, other than cigarettes, purchased from the
manufacturer or a wholesale dealer and who stores, sells or otherwise disposes
of those products within this State;

(b) Manufactures or produces products made from
tobacco, other than cigarettes, within this State and who sells or distributes
those products within this State to other wholesale dealers, retail dealers or
ultimate consumers; or

(c) Purchases products made from tobacco, other than
cigarettes, solely for the purpose of bona fide resale to retail dealers or to
other persons for the purpose of resale only.

5. “Wholesale price” means:

(a) Except as otherwise provided in paragraph
(b), the established price for which a product made from tobacco, other than
cigarettes, is sold to a wholesale dealer before any discount or other
reduction is made.

(b) For a product made from tobacco, other than
cigarettes, sold to a retail dealer or an ultimate consumer by a wholesale
dealer described in paragraph (b) of subsection 4, the established price for
which the product is sold to the retail dealer or ultimate consumer before any
discount or other reduction is made.

1. The Department shall issue a license as
a wholesale dealer or a license as a retail dealer to a person who submits a
complete application on a form prescribed by the Department and who otherwise
complies with the applicable provisions of this chapter and any regulations
adopted by the Department. The Department shall not charge any fee for the
issuance of a license pursuant to this subsection.

2. Except as otherwise provided in
subsection 3, a person shall not engage in the business of a wholesale dealer
or retail dealer in this State unless the person first obtains a license as a
wholesale dealer or retail dealer from the Department. A person may be licensed
as a wholesale dealer and as a retail dealer.

3. A person who wishes to engage in the
business of a retail dealer is not required to obtain a license as a retail
dealer pursuant to this section if the person is licensed as a retail cigarette
dealer pursuant to NRS 370.001 to 370.430, inclusive.

4. The Department may refuse to issue or
renew, or may suspend or revoke, a license issued pursuant to this section for
any violation of the provisions of NRS 370.440 to 370.503, inclusive.

5. The Department may adopt regulations
prescribing the form and contents of an application for, or which are otherwise
necessary for the issuance of, a license pursuant to this section.

6. Any person who violates any of the
provisions of this section is guilty of a misdemeanor.

1. Except as otherwise provided in
subsection 2, there is hereby imposed upon the purchase or possession of
products made from tobacco, other than cigarettes, by a customer in this State
a tax of 30 percent of the wholesale price of those products.

2. The provisions of subsection 1 do not
apply to those products which are:

(a) Shipped out of the State for sale and use
outside the State;

(b) Displayed or exhibited at a trade show,
convention or other exhibition in this State by a manufacturer or wholesale
dealer who is not licensed in this State; or

(c) Acquired free of charge at a trade show,
convention or other exhibition or public event in this State, and which do not
have significant value as determined by the Department by regulation.

3. This tax must be collected and paid by
the wholesale dealer to the Department, in accordance with the provisions of NRS 370.465, after the sale or distribution of those
products by the wholesale dealer. The wholesale dealer is entitled to retain
0.25 percent of the taxes collected to cover the costs of collecting and
administering the taxes if the taxes are paid in accordance with the provisions
of NRS 370.465.

4. Any wholesale dealer who sells or
distributes any of those products without paying the tax provided for by this
section is guilty of a misdemeanor.

NRS 370.460Unlawful to sell products on which tax is not paid.It is unlawful for any person to sell or offer
to sell any products made from tobacco, other than cigarettes, on which the tax
is not paid as provided for in NRS 370.450.

1. A wholesale dealer shall, not later
than 20 days after the end of each month, submit to the Department a report on
a form prescribed by the Department setting forth each sale of products made
from tobacco, other than cigarettes, that the wholesale dealer made during the
previous month.

2. Each report submitted pursuant to this
section on or after August 20, 2001, must be accompanied by the tax owed
pursuant to NRS 370.450 for products made from
tobacco, other than cigarettes, that were sold by the wholesale dealer during
the previous month.

3. The Department may impose a penalty on
a wholesale dealer who violates any of the provisions of this section as
follows:

(a) For the first violation within 7 years, a
fine of $1,000.

(b) For a second violation within 7 years, a fine
of $5,000.

(c) For a third or subsequent violation within 7
years, revocation of the license of the wholesale dealer.

NRS 370.470Invoices for certain products required.A
wholesale dealer must obtain from each manufacturer or wholesale dealer who is
not licensed in this State itemized invoices of all products made from tobacco,
other than cigarettes, purchased from and delivered by the manufacturer or
wholesale dealer who is not licensed in this State. The wholesale dealer must
obtain from the manufacturer or wholesale dealer who is not licensed in this
State separate invoices for each purchase made. The invoice must include:

1. The name and address of the
manufacturer or wholesale dealer who is not licensed in this State;

NRS 370.480Records required of retail and wholesale dealers; period for
retention.

1. Every wholesale dealer must keep at its
place of business complete and accurate records for that place of business,
including copies of all invoices of products made from tobacco, other than
cigarettes, which the wholesale dealer holds, purchases and delivers,
distributes or sells in this State. All records must be preserved for at least
3 years after the date of purchase or after the date of the last entry made on
the record.

2. Every retail dealer shall keep at its
place of business complete and accurate records for that place of business,
including copies of all itemized invoices or purchases of such products
purchased and delivered from wholesale dealers. The invoices must show the name
and address of the wholesale dealer and the date of the purchase. All records
must be preserved for at least 3 years after the date of the purchase.

1. The Department shall allow a credit of
30 percent of the wholesale price, less a discount of 0.25 percent for the
services rendered in collecting the tax, for products made from tobacco, other
than cigarettes, upon which the tax has been paid pursuant to NRS 370.450 and that may no longer be sold. If the
products have been purchased and delivered, a credit memo of the manufacturer
is required for proof of returned merchandise.

2. A credit must also be granted for any
products made from tobacco, other than cigarettes, shipped from this State and
destined for retail sale and consumption outside the State on which the tax has
previously been paid. A duplicate or copy of the invoice is required for proof
of the sale outside the State.

3. A wholesale dealer may claim a credit
by filing with the Department the proof required by this section. The claim
must be made on a form prescribed by the Department.

1. Upon proof satisfactory to the
Department and subject to the requirements of NRS 360.236, a refund must be allowed for
the taxes paid pursuant to NRS 370.450, upon
products made from tobacco other than cigarettes, that are sold to:

(a) The United States Government for the purposes
of the Army, Air Force, Navy or Marine Corps and are shipped to a point within
this State to a place which has been lawfully ceded to the United States
Government for the purposes of the Army, Air Force, Navy or Marine Corps;

(b) Veterans’ hospitals for distribution or sale
to service personnel with disabilities or ex-service personnel with
disabilities interned therein, but not to civilians or civilian employees;

(c) Any person if sold and delivered on an Indian
reservation or colony where an excise tax has been imposed which is equal to or
greater than the rate of the tax imposed pursuant to NRS
370.501; or

(d) An Indian if sold and delivered on an Indian
reservation or colony where no excise tax has been imposed or the excise tax is
less than the rate of the tax imposed pursuant to NRS
370.501.

2. Any refund must be paid as other claims
against the State are paid.

NRS 370.505Payment to wholesale dealer for cigarettes and other tobacco
products purchased by retail dealer: Time for payment; prohibition of and
penalty for extension of credit; investigations and hearings.

1. A retail dealer shall pay a wholesale
dealer for all cigarettes and other tobacco products purchased from the
wholesale dealer:

(a) If the cigarettes or other tobacco products
were delivered to the retail dealer on or after the 1st day of the month but
before the 16th day of the month, on or before the 29th day of the same month;
and

(b) If the cigarettes or other tobacco products
were delivered to the retail dealer on or after the 16th day of the month but
before the 1st day of the next month, on or before the 14th day of the next
month.

2. A wholesale dealer shall not extend
credit or otherwise allow a retail dealer to violate the provisions of
subsection 1.

3. The Department may impose a penalty on
a wholesale dealer who violates the provisions of subsection 2 as follows:

(a) For the first violation, a penalty of $500.

(b) For a second or subsequent violation, if
paragraph (c) does not apply, a penalty of $1,000.

(c) For a third or subsequent violation within
any 12-month period, a penalty of $5,000 or suspension or revocation of the
license of the wholesale dealer, or both.

4. Pursuant to a written complaint or upon
its own motion, the Department shall investigate an alleged violation of
subsection 2. The Department shall give notice to the alleged violator and
conduct a hearing, if warranted by the investigation. The Department may assess
a penalty pursuant to subsection 3, if it determines that the wholesale dealer
violated the provisions of subsection 2.

NRS 370.515Restriction on collection by Department of tax for products sold
on Indian reservation or colony.The
Department shall not collect the tax imposed by this chapter on cigarettes or
other products made from tobacco sold on an Indian reservation or Indian colony
if:

1. The governing body of the reservation
or colony imposes an excise tax pursuant to NRS
370.0751 or 370.501;

2. The excise tax imposed is equal to or
greater than the tax imposed pursuant to this chapter; and

3. The governing body of the colony or
reservation submits a copy of the ordinance imposing the excise tax to the
Department.

NRS 370.520Indian rights unabridged.Nothing
in this chapter shall operate to abridge the rights of any Indian, individual
or tribe, or to infringe upon the sovereignty of any Indian tribe, organized
under the Indian Reorganization Act, 25 U.S.C. §§ 476 et seq.

(Added to NRS by 1973, 1006)

NRS 370.525Civil action for injunctive relief.

1. Except as otherwise provided in subsection
2, a person may institute a civil action in a court of competent jurisdiction
for appropriate injunctive relief if the person:

1. Violations of the provisions of chapter 370A of NRS threaten the integrity of
the Master Settlement Agreement, the fiscal soundness of the State and public
health.

2. The enactment of the procedural
enhancements set forth in NRS 370.600 to 370.705, inclusive, will aid in the enforcement of the
provisions of chapter 370A of NRS and
thereby safeguard the Master Settlement Agreement, the fiscal soundness of the
State and public health.

NRS 370.605Definitions.As
used in NRS 370.600 to 370.705,
inclusive, unless the context otherwise requires, the words and terms defined
in NRS 370.610 to 370.660,
inclusive, have the meanings ascribed to them in those sections.

NRS 370.610“Brand family” defined.“Brand
family” means all styles of cigarettes sold under the same trademark and
differentiated from one another by means of additional modifiers or
descriptors, including, but not limited to, “menthol,” “lights,” “kings” and
“100s,” and includes any brand name, whether or not occurring alone or in
conjunction with any other word, any trademark, logo, symbol, motto, selling
message or recognizable pattern of colors, or any other indicia of product
identification identical or similar to, or identifiable with, a previously
known brand of cigarettes.

NRS 370.625“Distributor” defined.“Distributor”
means a person that is authorized to affix stamps to cigarette packages
pursuant to this chapter or any person that is required to pay the taxes on
cigarettes imposed pursuant to this chapter.

NRS 370.663Agreement with Indian tribe to implement this chapter or chapter
370A of NRS.The State
may enter into an agreement with an Indian tribe to enforce, administer or
otherwise implement any provision of this chapter or chapter 370A of NRS.

NRS 370.665Certification by manufacturers: Execution and delivery; form and
contents; supplemental certification.

1. A manufacturer of tobacco products
whose cigarettes are sold in this State, whether or not directly or through a
distributor, retailer or similar intermediary or intermediaries shall, not
later than April 30 of each year, execute and deliver to the Attorney General
and the Department, on a form provided by the Department, a certification which
certifies under penalty of perjury that, as of the date of that certification,
the manufacturer of tobacco products is:

(a) A participating manufacturer; or

(b) In full compliance with subsection 2 of NRS 370A.140, including any quarterly
installment payments required pursuant to NRS 370.690.

(a) A participating manufacturer shall include in
its certification pursuant to this section a list of its brand families. The
participating manufacturer shall update that list at least 30 calendar days
before it adds to or modifies its brand families by executing and delivering a
supplemental certification to the Attorney General and the Department.

(b) A nonparticipating manufacturer shall, in its
certification pursuant to this section:

(1) Include:

(I) A list of all of its brand
families and the number of units sold for each brand family that were sold in
the State during the preceding calendar year;

(II) A list of all of its brand
families that have been sold in the State at any time during the current
calendar year;

(III) The current mailing address of
the nonparticipating manufacturer; and

(IV) A valid electronic mail address
of the nonparticipating manufacturer;

(2) Indicate any brand family sold in the
State during the preceding calendar year that is no longer being sold in the
State as of the date of the certification; and

(3) Identify, by name and address:

(I) Any other manufacturer of those
brand families in the preceding or current calendar year; and

(II) Each wholesale dealer that
sells or offers for sale in this State any brand family of the nonparticipating
manufacturer.

Ê A
nonparticipating manufacturer shall update the information required by this
paragraph at least 30 calendar days before it adds to or modifies its brand
families or sells or distributes cigarettes in this State through a new
wholesale dealer by executing and delivering a supplemental certification to
the Attorney General and the Department.

3. In addition to the requirements of
subsection 2, the certification of a nonparticipating manufacturer pursuant to
this section must certify:

(a) That the nonparticipating manufacturer is
registered to do business in the State or has appointed an agent for service of
process and provided notice thereof as required by NRS
370.680;

(b) That the nonparticipating manufacturer has:

(1) Established and continues to maintain
a qualified escrow fund; and

(2) Executed a qualified escrow agreement
governing the qualified escrow fund that has been reviewed and approved by the
Attorney General;

(c) That the nonparticipating manufacturer is in
full compliance with chapter 370A of NRS
and any regulations adopted pursuant thereto;

(d) The name, address and telephone number of the
financial institution where the nonparticipating manufacturer has established
the qualified escrow fund required pursuant to chapter
370A of NRS and any regulations adopted pursuant thereto;

(e) The account number of that qualified escrow
fund and any subaccount number for this State;

(f) The amount the nonparticipating manufacturer
placed in that qualified escrow fund for cigarettes sold in the State during
the preceding calendar year, the date and amount of each such deposit, and such
evidence or verification as may be deemed necessary by the Department to
confirm the information required by this paragraph;

(g) The amount and date of any withdrawal or
transfer of money the nonparticipating manufacturer made at any time from that
qualified escrow fund or from any other qualified escrow fund into which it
ever made escrow payments pursuant to chapter
370A of NRS and any regulations adopted pursuant thereto; and

(h) That the nonparticipating manufacturer has
submitted to the Attorney General a request or consent to the United States
Department of the Treasury pursuant to 26 U.S.C. § 6103(c) authorizing the
Alcohol and Tobacco Tax and Trade Bureau of the Department, or in the case of a
foreign manufacturer, United States Customs and Border Protection of the United
States Department of Homeland Security, to disclose to the Attorney General the
federal excise tax returns of the manufacturer and each monthly operational
report of the manufacturer reported on Alcohol and Tobacco Tax and Trade Bureau
Form 5210.5, and all adjustments, changes and other amendments thereto.

1. Shall not include a brand family in its
certification pursuant to NRS 370.665 unless, if
the manufacturer is:

(a) A participating manufacturer, the
manufacturer affirms that the brand family is to be deemed to be its cigarettes
for the purposes of calculating its payments under the Master Settlement
Agreement for the relevant year, in the volume and shares determined pursuant
to the Master Settlement Agreement; or

(b) A nonparticipating manufacturer, the
manufacturer affirms that the brand family is to be deemed to be its cigarettes
for the purposes of chapter 370A of NRS.

Ê This
subsection must not be construed as limiting or otherwise affecting the right
of the State to maintain that a brand family constitutes cigarettes of a
different manufacturer of tobacco products for the purposes of calculating
payments under the Master Settlement Agreement or for the purposes of chapter 370A of NRS.

2. Shall maintain all invoices and
documentation of sales, and any other information relied upon by the
manufacturer for its certification pursuant to NRS
370.665, for at least 5 years, unless the manufacturer is otherwise
required by law to maintain them for a greater period.

NRS 370.675Directory of manufacturers and brand families: Duties of
Department; judicial review of exclusion from directory.

1. The Department shall create and
maintain on its Internet website and otherwise make available for public
inspection a directory that lists, except as otherwise provided in NRS 370.600 to 370.705,
inclusive, all manufacturers of tobacco products that have provided current and
accurate certifications conforming to the requirements of NRS 370.600 to 370.705,
inclusive, and all brand families that are listed in those certifications. The
Department:

(a) Shall not include or retain in the directory
the name or brand families of any nonparticipating manufacturer that has failed
to provide the required certification or whose certification the Department
determines is not in compliance with NRS 370.600 to
370.705, inclusive, unless the Department has
determined that the violation has been cured to its satisfaction.

(b) Shall not include or retain in the directory
a manufacturer of tobacco products or brand family if the Department concludes,
for a nonparticipating manufacturer, that:

(1) Any escrow payment required pursuant
to chapter 370A of NRS for any period for
any brand family, whether or not listed by the nonparticipating manufacturer,
has not been fully paid into a qualified escrow fund governed by a qualified
escrow agreement which has been approved by the Attorney General; or

(2) Any outstanding final judgment,
including any interest thereon, for a violation of chapter 370A of NRS has not been fully
satisfied for that manufacturer or brand family.

2. The Department shall update the
directory as necessary to correct mistakes and to add or remove a manufacturer
of tobacco products or brand family to keep the directory in conformity with
the requirements of NRS 370.600 to 370.705, inclusive.

3. Any determination of the Department not
to include in or to remove from the directory a manufacturer of tobacco
products or brand family is a final decision for the purposes of judicial
review.

1. The Department shall notify each
wholesale dealer when a manufacturer or brand family is added to or removed
from the directory pursuant to NRS 370.675 by
sending a notice to the mailing address or electronic mail address of the
wholesale dealer provided to the Department pursuant to NRS
370.073.

2. A wholesale dealer shall, not later
than 7 days after receiving a notice pursuant to subsection 1, provide:

(a) A copy of the notice to each retail dealer
that is a customer of the wholesale dealer; and

(b) The Department with a list of each retail
dealer to which a copy of the notice is provided pursuant to paragraph (a).

3. A retail dealer may, not later than 60
days after receiving a copy of a notice pursuant to subsection 2 that a
manufacturer or brand family has been removed from the directory pursuant to NRS 370.675, sell any cigarettes in its possession
from the manufacturer or of the brand family. The retail dealer shall, at the
expiration of the 60-day period, turn over possession of any unsold cigarettes
to the Department for disposal in the manner provided in subsection 4 of NRS 370.270.

4. A wholesale dealer shall not purchase
cigarettes for resale from a manufacturer, or of a brand family, which has been
removed from the directory by the Department, or for which the wholesale dealer
receives a notice of removal from the Department, until the manufacturer or
brand family is reentered in the directory by the Department.

NRS 370.680Nonresident or foreign nonparticipating manufacturers and
wholesale dealers: Agent for service of process.

1. Any nonresident or foreign
nonparticipating manufacturer or wholesale dealer that has not registered to do
business in the State as a foreign corporation or other business entity must,
as a condition precedent:

(a) For a nonparticipating manufacturer, to
having its brand families included or retained in the directory; or

(b) For a wholesale dealer, to selling cigarettes
in this State,

Ê appoint and
continually engage without interruption the services of an agent in this State
to act as its agent for the service of process on whom all process, in any action
or proceeding against it concerning or arising out of the enforcement of this
chapter or chapter 370A of NRS, may be
served in any manner authorized by law.

2. Service upon an agent pursuant to this
section constitutes legal and valid service of process on the nonparticipating
manufacturer or wholesale dealer. The nonparticipating manufacturer or
wholesale dealer shall provide the name, address, phone number and proof of the
appointment and availability of such agent to, and to the satisfaction of, the
Attorney General and the Department.

3. A nonparticipating manufacturer or
wholesale dealer shall provide notice to the Attorney General and the
Department at least 30 calendar days before the termination of the authority of
an agent appointed pursuant to this section and shall provide proof to the
satisfaction of the Attorney General and the Department of the appointment of a
new agent not less than 5 calendar days before the termination of appointment
of an existing agent. If an agent terminates his or her appointment as an
agent, the nonparticipating manufacturer or wholesale dealer shall notify the
Attorney General and the Department of that termination within 5 calendar days
and include with that notification proof to the satisfaction of the Attorney
General and the Department of the appointment of a new agent.

4. Any nonparticipating manufacturer or
wholesale dealer which sells or purchases cigarettes in this State and which
has not appointed and engaged an agent as required by this section shall be
deemed to have appointed the Secretary of State as an agent and may be
proceeded against in courts of this State by service of process upon the
Secretary of State, except that the appointment of the Secretary of State as an
agent does not satisfy the condition precedent for having the brand families of
the nonparticipating manufacturer included or retained in the directory.

1. A nonparticipating manufacturer shall
post a bond approved by the Attorney General for the benefit of the State of
Nevada if:

(a) The cigarettes of the nonparticipating
manufacturer have not been sold in this State during any of the 4 immediately
preceding calendar quarters;

(b) The nonparticipating manufacturer or an
affiliate failed to make a full and timely escrow deposit due under this
chapter or chapter 370A of NRS during any
of the immediately preceding 5 calendar years, unless the failure was neither
knowing nor reckless and was promptly cured upon notice; or

(c) The nonparticipating manufacturer or an
affiliate, or any of the brand families of the nonparticipating manufacturer or
an affiliate, were removed from the directory of this or any other state during
any of the immediately preceding 5 calendar years, unless the removal is
determined to have been erroneous or illegal.

2. The bond must be posted not less than
10 days before the beginning of each calendar quarter as a condition of the
nonparticipating manufacturer and its brand families being included in the
directory for that quarter. The amount of the bond must be the greater of
$25,000 or the largest required escrow amount due from the nonparticipating
manufacturer or its predecessor for any of the immediately preceding 12
calendar quarters.

3. If a nonparticipating manufacturer that
posted a bond has failed to make or have made on its behalf escrow deposits
equal to the full amount due for a calendar quarter within 15 business days
after the due date for that calendar quarter, the State of Nevada may execute
upon the bond in an amount equal to any remaining escrow amount due.

4. Any amount that the State of Nevada
collects on a bond posted by a nonparticipating manufacturer pursuant to this
section:

(a) Must be deposited into a special escrow account
established and maintained by the State of Nevada and used for purposes
authorized for the use of money in the qualified escrow fund of the
nonparticipating manufacturer pursuant to this chapter and chapter 370A of NRS; and

(b) Reduces the escrow amount due from the
nonparticipating manufacturer in the dollar amount collected.

5. Escrow obligations above the amount
collected on the bond remain due from the nonparticipating manufacturer and, as
provided in NRS 370.683, from wholesale dealers
that sold the cigarettes of the nonparticipating manufacturer during that
calendar quarter.

6. The withholding, use or return of amounts
deposited into the special escrow account must be handled in the same manner as
amounts deposited in the qualified escrow fund of the nonparticipating
manufacturer pursuant to the provisions of this chapter and chapter 370A of NRS.

7. As used in this section, “affiliate”
has the meaning ascribed to it in NRS
370A.030.

(a) A wholesale dealer is liable for escrow
deposits required pursuant to this chapter and chapter
370A of NRS if:

(1) The wholesale dealer receives notice
from the Attorney General or the Department that there is a shortfall in a
qualified escrow fund with respect to cigarettes of a nonparticipating
manufacturer that were stamped or distributed by the wholesale dealer; and

(2) The shortfall is not cured by the
wholesale dealer or nonparticipating manufacturer within 90 calendar days after
the wholesale dealer receives that notice.

Ê The
liability of the wholesale dealer for the escrow deposits must be calculated
pursuant to paragraph (b).

(b) If there is a shortfall in the qualified
escrow fund of a nonparticipating manufacturer for a calendar quarter, each
wholesale dealer that sold or distributed cigarettes of that nonparticipating
manufacturer during that calendar quarter shall deposit into an escrow account
designated by the Attorney General an amount equal to the shortfall multiplied
by a fraction, the numerator of which is the number of cigarettes of that
nonparticipating manufacturer that were sold in or into this State by the
wholesale dealer during that calendar quarter, and the denominator of which is
the total number of cigarettes of that nonparticipating manufacturer that were
sold or distributed by all wholesale dealers in or into this State during that
calendar quarter. In making the calculation, any cigarettes of the
nonparticipating manufacturer that were sold or distributed in or into this
State by a wholesale dealer during the calendar quarter in which the wholesale
dealer collected and deposited the required escrow deposit amount on or before
the due date for deposits for that quarter must be excluded from both the
numerator and the denominator of the fraction.

2. To the extent that a wholesale dealer
makes any payment with respect to a shortfall pursuant to this section, the
wholesale dealer has a claim against the nonparticipating manufacturer for the
amount of the payment.

3. A wholesale dealer may require a
nonparticipating manufacturer, as a condition of the agreement of the wholesale
dealer to purchase the cigarettes of the nonparticipating manufacturer, to:

(a) Prepay the escrow deposit amount of the
nonparticipating manufacturer into the escrow account designated in the
certification of the nonparticipating manufacturer filed with the Attorney
General pursuant to NRS 370.665; and

(b) Require the escrow agent to provide to the
wholesale dealer and the Attorney General proof of that prepayment.

4. Upon the request of a wholesale dealer
who requires a nonparticipating manufacturer to comply with the provisions of
paragraphs (a) and (b) of subsection 3, the Attorney General shall provide to
the wholesale dealer a written verification of whether the nonparticipating
manufacturer has made the escrow deposits required from the nonparticipating
manufacturer pursuant to this chapter and chapter
370A of NRS for a calendar quarter.

5. If a wholesale dealer requires a
nonparticipating manufacturer to comply with the provisions of paragraph (a) of
subsection 3 and receives a written verification from the Attorney General that
the nonparticipating manufacturer has made the escrow deposits required from
the nonparticipating manufacturer pursuant to this chapter and chapter 370A of NRS for a calendar quarter:

(a) The wholesale dealer is not liable for any of
those escrow deposits required for that calendar quarter;

(b) The provisions of subsection 1 do not apply
to the wholesale dealer with respect to any cigarettes of the nonparticipating
manufacturer that were sold or distributed in or into this State during that
calendar quarter; and

(c) The cigarettes of the nonparticipating
manufacturer that were sold or distributed in or into this State by the
wholesale dealer during that calendar quarter must be excluded entirely from
the calculations required by subsection 1.

1. An importer is jointly and severally
liable for the escrow deposit due pursuant to NRS 370A.140 for each cigarette which is
intended for sale in this State which the importer causes to be sent to a
person who holds a license as a wholesale dealer or license as a retail dealer
issued by the Department.

2. A nonparticipating manufacturer located
outside the United States that conducts business in this State shall provide to
the Attorney General on a form prescribed by the Attorney General a declaration
from each importer that imports the cigarettes of the nonparticipating
manufacturer which are intended for sale in this State stating that the
importer accepts liability pursuant to subsection 1 and consents to the
jurisdiction of the courts of this State for the purposes of enforcing this section.

3. As used in this section, “importer” has
the meaning ascribed to it in NRS 370.0295.

NRS 370.685Submission to Department, maintenance and use of certain
information.

1. Not later than 20 calendar days after
the end of each calendar quarter, and more frequently if so directed by the
Department, each distributor shall submit such information as the Department
requires to facilitate compliance with the provisions of NRS
370.600 to 370.705, inclusive, including,
without limitation, a list by brand family of the total number of cigarettes
or, in the case of “roll-your-own” tobacco, the equivalent unit count, for
which the distributor affixed stamps during the previous calendar quarter or
otherwise paid the tax due for those cigarettes. The distributor shall maintain
for at least 5 years, and make available to the Department, all invoices and
documentation of sales of all cigarettes of nonparticipating manufacturers and
any other information relied upon in reporting to the Department.

2. The Department may disclose to the
Attorney General any information received pursuant to NRS
370.600 to 370.705, inclusive, and requested by
the Attorney General for purposes of determining compliance with and enforcing
the provisions of NRS 370.600 to 370.705, inclusive. The Department and Attorney
General shall share with each other the information received pursuant to the
provisions of NRS 370.600 to 370.705,
inclusive, and may share such information with other federal, state or local
agencies only for purposes of enforcement of those provisions, the provisions
of chapter 370A of NRS or the corresponding
laws of other states.

3. The Department may require at any time
from a nonparticipating manufacturer proof, from the financial institution in
which that manufacturer has established a qualified escrow fund for the purpose
of compliance with chapter 370A of NRS, of
the amount of money in that fund, exclusive of interest, the amount and date of
each deposit to that fund, and the amount and date of each withdrawal from that
fund.

4. In addition to the information
otherwise required to be submitted pursuant to NRS
370.600 to 370.705, inclusive, the Department
may, at any time, require a distributor or manufacturer of tobacco products to
submit any additional information or documentation as is necessary to enable
the Department to determine whether a manufacturer of tobacco products is or
will continue to be in compliance with the provisions of this chapter and chapter 370A of NRS.

1. To promote compliance with the
provisions of NRS 370A.140, the
Department may adopt regulations requiring a manufacturer of tobacco products
to make the escrow deposits required by NRS
370A.140 in quarterly installments during the year in which the sales
covered by those deposits are made. The Department may require the production
of information sufficient to enable the Department to determine the adequacy of
the amount of each quarterly installment.

2. The Department may adopt such
regulations as it deems necessary to carry out the provisions of NRS 370.600 to 370.705,
inclusive.

1. The Account for Tobacco Enforcement is
hereby created in the State General Fund. The Attorney General shall administer
the Account.

2. The money in the Account must only be
used to enforce the provisions of NRS 370.600 to 370.705, inclusive, and to pay the expenses incurred
by the Attorney General in the discharge of his or her duties, including,
without limitation, expenses relating to the provision of training and the
payment of the salaries and benefits of employees.

3. Money in the Account must remain in the
Account and does not revert to the State General Fund at the end of any fiscal
year.

1. Except as otherwise provided in
subsection 2, the Attorney General may apply for any available grant and may
accept any gift, grant or donation to assist in carrying out his or her duties
pursuant to NRS 370.600 to 370.705,
inclusive.

2. The Attorney General shall not accept
any gift, grant or donation from any manufacturer of tobacco products or any
other manufacturer, as that term is defined in NRS
370.0315.

3. Any money received by the Attorney General
pursuant to this section must be deposited in the Account for Tobacco
Enforcement.

(a) Affix a stamp to a package or other container
of cigarettes of a manufacturer of tobacco products or brand family which is
not included in the directory; or

(b) Sell, or offer or possess for sale, in this
State cigarettes of a manufacturer of tobacco products or brand family not
included in the directory.

2. A person who violates any provision of
subsection 1 is guilty of a gross misdemeanor.

3. In addition to any other penalty
authorized by law, the Department may impose on each person who violates any
provision of subsection 1 a civil penalty for each such violation of not more
than $5,000 or 500 percent of the retail value of the cigarettes involved in
the violation, whichever is greater.

4. Any violation of subsection 1
constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

5. For the purposes of this section, each
stamp affixed to and each sale or offer to sell cigarettes in violation of
subsection 1 constitutes a separate violation.

1. In addition to or in lieu of any other
penalty or remedy provided by law, the Attorney General may seek a civil
penalty in an amount not to exceed $1,000 per day for the failure of a
wholesale dealer timely or accurately to comply with any provision of this
chapter or chapter 370A of NRS. The license
of the wholesale dealer may be suspended or revoked if the wholesale dealer
fails to pay such a civil penalty within 30 days after it is imposed.

2. In addition to or in lieu of any other
penalty or remedy provided by law, the Attorney General may seek a civil
penalty in an amount not to exceed $1,000 per day for the failure of a
nonparticipating manufacturer timely or accurately to comply with any provision
of this chapter or chapter 370A of NRS. A
nonparticipating manufacturer and the brand families of a nonparticipating
manufacturer may be denied listing in the directory or removed from the
directory if the nonparticipating manufacturer fails to pay such a civil
penalty within 30 days after it is imposed.

3. Any civil penalty collected pursuant to
this section must be deposited in the Account for Tobacco Enforcement.

NRS 370.697Civil penalty: False or inaccurate certification by wholesale
dealer or nonparticipating manufacturer; deposit; failure to pay.In addition to or in lieu of any other penalty
or remedy provided by law, the Attorney General may seek a civil penalty in an
amount not to exceed $20,000 against any wholesale dealer or nonparticipating
manufacturer that makes a certification pursuant to this chapter or chapter 370A of NRS which asserts the truth of
any material matter that the wholesale dealer or nonparticipating manufacturer
knows to be false or inaccurate. Any civil penalty collected pursuant to this
section must be deposited in the Account for Tobacco Enforcement. If such a
civil penalty is not paid within 30 days after it is imposed against:

1. A wholesale dealer, the license of the
wholesale dealer may be suspended or revoked.

2. A nonparticipating manufacturer, the
nonparticipating manufacturer and the brand families of the nonparticipating
manufacturer may be denied listing in the directory or removed from the directory.

NRS 370.698Suspension, revocation and reinstatement of license of wholesale
dealer whose license is suspended or revoked in another state; denial of
listing in, removal from and reinstatement to directory of nonparticipating
manufacturer and its brand families.

1. The license of a wholesale dealer may
be suspended or revoked if a similar license of the wholesale dealer is
suspended or revoked in any other state based on an act or omission that would,
if the act or omission had occurred in this State, be grounds for the
suspension or revocation of the license of the wholesale dealer pursuant to NRS 370.379, unless the wholesale dealer demonstrates
that the suspension or revocation of its license in the other state was
effected without due process. A wholesale dealer whose license is suspended or
revoked in this State pursuant to this subsection is eligible for reinstatement
upon the earlier of the date on which the violation in the other state is cured
or the date on which the license of the wholesale dealer is reinstated in the
other state.

2. A nonparticipating manufacturer and its
brand families may be denied listing in the directory or removed from the
directory for any of the following reasons:

(a) The nonparticipating manufacturer is removed
from the directory of another state based on an act or omission that would, if
the act or omission had occurred in this State, be grounds for the removal of
the nonparticipating manufacturer from the directory of this State pursuant to NRS 370.675, unless the nonparticipating manufacturer
demonstrates that its removal from the directory of the other state was
effected without due process. A nonparticipating manufacturer that is removed
from the directory of this State pursuant to this paragraph is eligible for
reinstatement to the directory upon the earlier of the date on which the
violation in the other state is cured or the date on which the nonparticipating
manufacturer is reinstated to the directory of the other state.

(b) The nonparticipating manufacturer is
convicted of any crime relating to the manufacture, sale or distribution of
tobacco products in this State or another state.

(c) The nonparticipating manufacturer fails to
report the existence or result, including any conviction, of any investigation
of the nonparticipating manufacturer which is known to the nonparticipating
manufacturer regarding the commission of any crime relating to the manufacture,
sale or distribution of tobacco products in this State or another state.

(d) The nonparticipating manufacturer fails to
report any investigation of the nonparticipating manufacturer which is known to
the nonparticipating manufacturer regarding any violation of the laws of any
other state based on an act or omission that would, if the act or omission had
occurred in this State, be grounds for the removal of the nonparticipating
manufacturer from the directory of this State pursuant to NRS 370.675.

(e) The nonparticipating manufacturer knowingly
makes a false, material statement in any report, filing or other communication
provided to this State pursuant to this chapter or chapter 370A of NRS.

(f) The nonparticipating manufacturer has a
shortfall or fails to make an escrow deposit that is due in another state or
territory of the United States, has been given reasonable notice of the
shortfall or failure and has failed to cure the shortfall or make the deposit
within 30 days after receiving notice of the shortfall or failure.

NRS 370.700Action for injunction or enforcement; recovery of costs;
disgorgement of profits; remedies and penalties cumulative.

1. The Attorney General, on behalf of the
Department, may bring an action in the district court of this State to:

(a) Enjoin any threatened or actual violation of
the provisions of NRS 370.600 to 370.705, inclusive, by a distributor or manufacturer
and to compel the distributor or manufacturer to comply with those provisions;
or

2. In any action brought by the State to
enforce the provisions of NRS 370.600 to 370.705, inclusive, the State is entitled to recover
any costs of investigation, expert witness fees, costs of the action and
reasonable attorney’s fees.

3. If a court determines that a person has
violated any provision of NRS 370.600 to 370.705, inclusive, the court shall order any profits,
gain, gross receipts or other benefit from the violation to be disgorged and
paid to the State Treasurer for deposit in the State General Fund.

4. The remedies and penalties provided in NRS 370.600 to 370.705,
inclusive, are cumulative to each other and to the remedies and penalties
available under any other law of this State.

1. If a court of competent jurisdiction
finds that the provisions of NRS 370.600 to 370.705, inclusive, conflict and cannot be harmonized
with the provisions of chapter 370A of NRS,
then the provisions of chapter 370A of NRS
shall be deemed to control.

2. If any section, subsection,
subdivision, paragraph, sentence, clause or phrase of NRS
370.600 to 370.705, inclusive, causes chapter 370A of NRS to no longer constitute a
qualifying or model statute, as those terms are defined in the Master
Settlement Agreement, then that portion of NRS 370.600
to 370.705, inclusive, shall be deemed to be
invalid.

3. If any section, subsection, subdivision,
paragraph, sentence, clause or phrase of this chapter is for any reason held to
be invalid, unlawful or unconstitutional, that decision shall be deemed not to
affect the validity of the remaining portions of this chapter or any part
thereof.